91st General Assembly

Legislation

[ Search ] [ Legislation ]

[ Home ] [ Back ] [ Bottom ]

91_HB4083LRB9110543EGfg 1 AN ACT to amend the Illinois Pension Code and the State 2 Mandates Act. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Pension Code is amended by 6 changing Sections 7-142 and 7-144.3 as follows: 7 (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142) 8 Sec. 7-142. Retirement annuities - Amount. 9 (a) The amount of a retirement annuity shall be the sum 10 of the following, determined in accordance with the actuarial 11 tables in effect at the time of the grant of the annuity: 12 1. For employees with 8 or more years of service, 13 an annuity computed pursuant to subparagraphs a or b of 14 this subparagraph 1, whichever is the higher, and for 15 employees with less than 8 years of service the annuity 16 computed pursuant to subparagraph a: 17 a. The monthly annuity which can be provided 18 from the total accumulated normal, municipality and 19 prior service credits, as of the attained age of the 20 employee on the date the annuity begins provided 21 that such annuity shall not exceed 75% of the final 22 rate of earnings of the employee. 23 b. (i) The monthly annuity amount determined 24 as follows by multiplying (a) 1 2/3% for annuitants 25 with not more than 15 years or (b) 1 2/3% for the 26 first 15 years and 2% for each year in excess of 15 27 years for annuitants with more than 15 years by the 28 number of years plus fractional years, prorated on a 29 basis of months, of creditable service and multiply 30 the product thereof by the employee's final rate of 31 earnings. -2- LRB9110543EGfg 1 (ii) For the sole purpose of computing the 2 formula (and not for the purposes of the limitations 3 hereinafter stated) $125 shall be considered the 4 final rate of earnings in all cases where the final 5 rate of earnings is less than such amount. 6 (iii) The monthly annuity computed in 7 accordance with this subparagraph b, shall not 8 exceed an amount equal to 75% of the final rate of 9 earnings. 10 (iv) For employees who have less than 35 years 11 of service, the annuity computed in accordance with 12 this subparagraph b (as reduced by application of 13 subparagraph (iii) above) shall be reduced by 0.25% 14 thereof (0.5% if service was terminated before 15 January 1, 1988) for each month or fraction thereof 16 (1) that the employee's age is less than 60 years, 17 or (2) if the employee has at least 30 years of 18 service credit, that the employee's service credit 19 is less than 35 years, whichever is less, on the 20 date the annuity begins. 21 2. The annuity which can be provided from the total 22 accumulated additional credits as of the attained age of 23 the employee on the date the annuity begins. 24 (b) If payment of an annuity begins prior to the 25 earliest age at which the employee will become eligible for 26 an old age insurance benefit under the Federal Social 27 Security Act, he may elect that the annuity payments from 28 this fund shall exceed those payable after his attaining such 29 age by an amount, computed as determined by rules of the 30 Board, but not in excess of his estimated Social Security 31 Benefit, determined as of the effective date of the annuity, 32 provided that in no case shall the total annuity payments 33 made by this fund exceed in actuarial value the annuity which 34 would have been payable had no such election been made. -3- LRB9110543EGfg 1 (c) The retirement annuity shall be increased each year 2 by 2%, not compounded, of the monthly amount of annuity, 3 taking into consideration any adjustment under paragraph (b) 4 of this Section. This increase shall be effective each 5 January 1 and computed from the effective date of the 6 retirement annuity, the first increase being .167% of the 7 monthly amount times the number of months from the effective 8 date to January 1. Beginning January 1, 1984 and thereafter, 9 the retirement annuity shall be increased by 3% each year, 10 not compounded; except that beginning January 1, 2001, in the11case of a retirement annuity that has been calculated in12whole or in part under Section 7-142.1, the increase provided13under this subsection shall be based upon the entire amount14of annuity payable at the time of the increase, including any15increases previously received under this subsection,16regardless of whether the annuitant was in service on or17after the effective date of this amendatory Act of the 91st18General Assembly. 19 This increase shall not be applicable to annuitants who 20 are not in service on or after September 8, 1971. 21 (Source: P.A. 91-357, eff. 7-29-99.) 22 (40 ILCS 5/7-144.3) (from Ch. 108 1/2, par. 7-144.3) 23 Sec. 7-144.3. Supplemental benefit payment. 24 (a) A supplemental benefit payment, consisting of a sum 25 calculated as provided in subsection (c), shall be payable to 26 each eligible retirement annuitant and surviving spouse 27 annuitant on July 1, 1993, and on each subsequent July 1; 28 except that if this Code is amended to change the 29 uncompounded annual increase in retirement annuity granted in 30 subsection (c) of Section 7-142 to a compounded annual 31 increase,no supplemental benefit shall be paid under this 32 Section on any July 1 occurring on or after the effective 33 date of that amendment.However, the compounding of annual-4- LRB9110543EGfg 1increases for sheriff's law enforcement employees by this2amendatory Act of the 91st General Assembly shall be3disregarded for the purposes of this subsection.4 The amount of the supplemental benefit payment, and a 5 person's eligibility to receive the supplemental benefit 6 payment, shall be redetermined for each year in which the 7 benefit is payable. 8 (b) To be eligible to receive a supplemental benefit 9 payment, a person must be entitled to receive a retirement 10 annuity or surviving spouse annuity from the Fund on the July 11 1 supplemental benefit payment date, and must have been 12 receiving that annuity during each of the 12 months 13 immediately preceding that date; except that a surviving 14 spouse annuitant whose surviving spouse annuity began less 15 than one year before the July 1 supplemental benefit payment 16 date shall be eligible if the deceased spouse received a 17 retirement annuity from the Fund during the period from the 18 previous July 1 until the start of the surviving spouse 19 annuity. 20 (c) The amount of the supplemental benefit payment shall 21 be determined by the Board as follows: 22 (1) The total amount available for the payment of 23 supplemental benefit payments under this Section in any 24 year shall be 0.62% of the last annual participating 25 payroll for all participating municipalities and 26 participating instrumentalities in the Fund, as 27 determined and reconciled by the Fund. 28 (2) The amount of the supplemental benefit payment 29 to each eligible person shall be a portion of the total 30 amount available under paragraph (1), equal to that 31 portion of the total amount payable by the Fund to all 32 eligible persons for retirement and surviving spouse 33 annuities in the June preceding the July 1 supplemental 34 benefit payment date, that is payable to the eligible -5- LRB9110543EGfg 1 person in that month. 2 (3) Notwithstanding paragraph (2), the amount of 3 any supplemental benefit payment paid to an annuitant 4 under this Section shall not exceed any benefit 5 limitations established by the federal government for 6 qualified public pension plans. 7 (Source: P.A. 87-850.) 8 Section 90. The State Mandates Act is amended by adding 9 Section 8.24 as follows: 10 (30 ILCS 805/8.24 new) 11Sec. 8.24. Exempt mandate. Notwithstanding Sections 612and 8 of this Act, no reimbursement by the State is required13for the implementation of any mandate created by this14amendatory Act of the 91st General Assembly.15 Section 99. Effective date. This Act takes effect upon 16 becoming law.